Renting vs. Buying: Making the Right Choice for You
Deciding on whether to rent or buy is a personal decision. Beyond your preferences, your finances and lifestyle will also factor into your decision. Here, we discuss how to make the right choice regarding renting vs. buying your home sweet home.
Consider Your Finances
You will only have a few choices in whether to rent or buy if your finances suggest one of the options. For instance, if you have a reliable income but your credit could be better, you’ll have more luck finding a rental (albeit one with small spaces) than securing a home loan.
In cases like these, the choice is made for you. The good news is that if your goal is to buy a forever home someday, once you pass your tenant verification and move into a new rental place, you can start rebuilding your credit and saving while you rent. Sometimes, you can even build your credit by submitting your rent to companies that report to credit companies.
Your General Lifestyle
If you have a family, purchasing a home makes more sense than renting one. Renting can get expensive, and buying a home can be more cost-effective if you have the financial backing. It’s not uncommon for the average monthly mortgage to fall well below rental averages in different areas of the U.S.
With this information, you may start looking at homes for sale. At the same time, renting makes the most logical sense for your family if you know you will not live in the general area you are in for a very long time.
With this information, you may start looking at homes for sale. At the same time, renting makes the most logical sense for your family if you know you will not be living in the general area you are in for a very long time.
Community And District
If you want to raise your kids in a district you’re proud of or that has schools you feel are best for your kids or your own studies, you may feel compelled to purchase a home near these schools for an easier commute.
Likewise, renting may be necessary to ensure that your kids can still attend school there if these areas are expensive. You may also wish to belong to a community that feels like home, which can also influence your decision to buy or rent.
Your Future Plans
Consider renting vs. buying a home if you have big plans for the future. You may be saving for a grand adventure or want to accumulate wealth for your children to support their college. In any case, the amount of money you need to keep will influence the decision you make whether to rent or buy. Depending on your options, either could be more financially wise to pursue.
External Societal Expectations
DDeciding on whether to rent or buy may also be influenced by your perspective on societal expectations. Factors influencing external expectations include age, social status, family dynamics, etc.
You may also not want to entertain the influence of others on your life choices and make your decision without concerning yourself with outside influences.
If you are highly motivated to appease these expectations, depending on how you were raised and what you feel needs to happen, either buying or renting may be more suitable for you.
There Is No Right Or Wrong Approach If You Do What’s Best For You
Ultimately, making the right choice for you is just that: making the right choice for you. The factors that play a role in whether to rent or buy are based on the individual.
The best thing to do is consider your options and then do what feels like the best choice for you and any other family living with you. There is no right or wrong as long as your personal interests and finances are respected.
